MILPITAS, Calif.--Citing problems with its foundry and assembly partners, Sipex Corp., a provider of analog integrated circuits, expects its sales for the second quarter of 2004 to be below its previous guidance, the company said Wednesday (June 30).
Sipex expects to report net sales in the range of $16 to $16.3 million. These anticipated net sales are down 10-to-12 percent from the prior quarter, but up 7-to-10 percent when compared to the same period last year.
"We are disappointed with these results," Walid Maghribi, president and chief executive officer of Sipex, in a statement. "We are missing our sales target in two areas. In optical storage products, our wafer foundry and backend subcontractor were not able to ramp production of our new products as fast as needed to satisfy the strong demand. The ramp from zero to more than a million units per month could not be achieved in the first quarter of production of the products. Asia was the second challenge due to end of the quarter pricing pressure from our distributors."